Palm Valley Capital Management has released its third-quarter 2026 investor letter for the Palm Valley Capital Fund. The fund gained 1.61% during the quarter, outperforming the S&P SmallCap 600 Index, which declined 7.93%, and the Morningstar Small Cap Total Return Index, which fell 5.60%. Treasury bills accounted for 75.5% of the fund’s assets at quarter-end, while its equity holdings returned 4.8%.
The letter examines a market in which small-cap stocks lagged their larger peers even as the S&P 500 approached its highs. The managers draw parallels between sharp stock-price swings in a rising market and conditions during the technology bubble. They also question whether policies aimed at preserving today’s wealth come at the expense of future prosperity, arguing that rising asset prices deepen economic disparities while shifting financial burdens to future generations. Citing federal debt exceeding $40 trillion, the managers frame the debate around how wealth and obligations are distributed across generations, alongside the familiar divide between rich and poor.
Avista Corporation (NYSE:AVA) is an energy utility company that generates and distributes electricity and provides natural gas services in the United States. Its operations serve communities in Washington, Idaho, and Oregon, while its Alaska Electric Light and Power subsidiary supplies electricity in Alaska. On October 29, 2026, its shares closed at $37.45, an increase of 1.19% from the previous session, giving the company a market capitalization of approximately $3.14 billion.
Here’s what Palm Valley Capital Management has to say about Avista Corporation (NYSE:AVA):
“Toward the end of the quarter, we initiated small positions in Avista Corporation (ticker: AVA). Founded in 1889, Avista is a regulated utility serving approximately 429,000 electric and 386,000 natural gas customers across Washington, Idaho, and Oregon. Avista also owns Alaska Electric Light & Power, which provides regulated electric service to approximately 18,000 customers. We’ve owned Avista in the portfolio before, selling our position last year after the stock exceeded our valuation. Like many utility stocks, Avista has recently been pressured by higher interest rates. In addition, a wildfire in its service territory during the quarter likely contributed to the stock’s weakness. Avista has a long history of steadily growing book value and dividends. With its shares currently trading near tangible book value and at approximately 13.5x estimated earnings, we believe the stock once again offers an attractive potential return relative to the risk assumed.”
Avista Corporation (NYSE: AVA) announced on October 6, 2026, that it will release its third-quarter financial results on November 4, 2026, at 7:05 a.m. Eastern Time, followed by a conference call at 10:30 a.m. The upcoming release will provide updated financial information for the utility, whose operating division serves approximately 429,000 electric customers and 386,000 natural gas customers.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
